Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: barmag25; arrogantsob

ping.......

There is always enough gold to back the currency.


19 posted on 08/23/2012 4:33:27 PM PDT by bert ((K.E. N.P. N.C. +12 ..... Present failure and impending death yield irrational action))
[ Post Reply | Private Reply | To 1 | View Replies ]


To: bert

No, actually there is not. Even with the immense gold supplies of the New World the growth rate for gold and silver is less than 2%. This means that there is a deflationary bias built in with the GS and a higher unemployment rate results than is acceptable to the modern electorate.

And can you imagine how idiotic it would be to actually have to use the metal in monetary transactions? How much fraud and inefficiency would result.

Fiat currency use is never going away as long as civilization does not collapse. It has been instrumental in the massive growth rate in the US economy since the creation of the Fed and the incredible improvement in the standard of living for even the poorest American.

Has management of the dollar been perfect? No, but overall it has been pretty good.


50 posted on 08/23/2012 9:20:04 PM PDT by arrogantsob (Obama MUST Go. Sarah herself supports Romney.)
[ Post Reply | Private Reply | To 19 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson